None of my business question ?

[myinsurebiz]

If an agent gets a 100% comm from one of the FE Carriers thru their fmo, imo, , how much does the IMO, fmo,, etc get from tht sale?

As much as they can.

 

[myinsurebiz]

Obviously depends on how much that particular carrier pays but you have to keep in mind the organization has business expenses to pay for. They likely are not just sitting back and collecting overrides with no expenses or risk.

Depends on the set up.

We provide Leads for our Agents, in addition to all the other operational expenses . . .

 

[myinsurebiz]

Office
Staff
Lead generation
Training events
Rollups

Until peeps realize 5 figure rollup debt - they will never understand.

 

[Newby]

This is true, but I think that agents should also pay close attention to what they're receiving on the back end as well. Unfortunately, a lot of times focus/emphasis is placed solely on the front end commissions, and oftentimes agents end up getting "jerked" on their renewals.

It's the easiest thing in the world to compare. Just print out the grids from any agency you are considering and compare them side by side. First year and renewal. FexContracting still puts them right on our website just like the old days. With most agencies you have to call and request that they email them to you. And of course any agency that won't email their grids easily (first year and renewal) the first time you ask is NEVER one an agent should consider.

 

[WinoBlues]

I think it was Newby that talked about looking at the 10 year percentage.

I look at the 5 year and 10 year. My persistency is high so those latter years are important to me.

 

[Newby]

I think it was Newby that talked about looking at the 10 year percentage.

I look at the 5 year and 10 year. My persistency is high so those latter years are important to me.

I used to have the total commission over10-years in bold print next to each company. So if a company paid 100% first year and 9% renewals over the next nine years I listed in bold print 181% 10-year commission.

I did that because an agent (who became most famous for his agent training website) requested a release from me on his Settlers contract. He was getting a 5 point RAISE on it. He hated to go but he was starting to pyramid recruit and needed all the points he could get. Turned out he was giving up 7- points per year for years 2 through 10. So he got 5% in exchange for giving up 63%. And he was a trainer of other agents. (He's now long since failed out of the biz).

That was my eye opener that hardly ANY agents paid any attention to renewals. And sure enough one by one each FE company bumped our fist year a little and cut renewals drastically. The days of the 12% renewals are basically a distant memory. I honestly think a company could come out with 125% first year and no renewals and 75% of the FE agents would think it was the highest commission product in their bag.

 

[rousemark]

I used to have the total commission over10-years in bold print next to each company. So if a company paid 100% first year and 9% renewals over the next nine years I listed in bold print 181% 10-year commission.

I did that because an agent (who became most famous for his agent training website) requested a release from me on his Settlers contract. He was getting a 5 point RAISE on it. He hated to go but he was starting to pyramid recruit and needed all the points he could get. Turned out he was giving up 7- points per year for years 2 through 10. So he got 5% in exchange for giving up 63%. And he was a trainer of other agents. (He's now long since failed out of the biz).

That was my eye opener that hardly ANY agents paid any attention to renewals. And sure enough one by one each FE company bumped our fist year a little and cut renewals drastically. The days of the 12% renewals are basically a distant memory. I honestly think a company could come out with 125% first year and no renewals and 75% of the FE agents would think it was the highest commission product in their bag.

His break even point was the end of the second year.. even allowing for reasonable lapse.... So, after 24 months he was really in the hole and the hole got larger each year.

 

[PA Bill]

When you go to Home Depot to buy a hammer, do you research how much profit they're making or are you just concerned with how much you're paying?
If you don't like the price, shop around!

 

[BibH]

I used to have the total commission over10-years in bold print next to each company. So if a company paid 100% first year and 9% renewals over the next nine years I listed in bold print 181% 10-year commission.

I did that because an agent (who became most famous for his agent training website) requested a release from me on his Settlers contract. He was getting a 5 point RAISE on it. He hated to go but he was starting to pyramid recruit and needed all the points he could get. Turned out he was giving up 7- points per year for years 2 through 10. So he got 5% in exchange for giving up 63%. And he was a trainer of other agents. (He's now long since failed out of the biz).

That was my eye opener that hardly ANY agents paid any attention to renewals. And sure enough one by one each FE company bumped our fist year a little and cut renewals drastically. The days of the 12% renewals are basically a distant memory. I honestly think a company could come out with 125% first year and no renewals and 75% of the FE agents would think it was the highest commission product in their bag.

As Newby said don't Cry for the Imo. Their making 15 % plus on FYC (That takes into account 30% over ride on many street agents and 5-10% on guys with big downlines) This on a net of $8 mil business is $1.2 mil . But whats not said is the 2% plus their making yr after year on the back end . On even a block of $20 mil thats $400k a year . Thats a hell of a lot of chargebacks . I'll give Newby he's one of the only Imo's that talks about what a Imo makes . So damm well make sure that Imo is making his override with great dm leads or other perks .

 

[PA Bill]

I used to have the total commission over10-years in bold print next to each company. So if a company paid 100% first year and 9% renewals over the next nine years I listed in bold print 181% 10-year commission.

I did that because an agent (who became most famous for his agent training website) requested a release from me on his Settlers contract. He was getting a 5 point RAISE on it. He hated to go but he was starting to pyramid recruit and needed all the points he could get. Turned out he was giving up 7- points per year for years 2 through 10. So he got 5% in exchange for giving up 63%. And he was a trainer of other agents. (He's now long since failed out of the biz).

That was my eye opener that hardly ANY agents paid any attention to renewals. And sure enough one by one each FE company bumped our fist year a little and cut renewals drastically. The days of the 12% renewals are basically a distant memory. I honestly think a company could come out with 125% first year and no renewals and 75% of the FE agents would think it was the highest commission product in their bag.

A bird in hand is worth two in the bush! Only a fool thinks otherwise in the FE arena.